Has anyone had any experience renting bedrooms individually in the Austin area? I am considering a 3BR/3BA in the Round Rock area, and I think this might be a way to create some cash-flow in a market that is otherwise not friendly to cash-flow investors. What are your thoughts?
not worth the time. Too many headaches.
As far as the legalities--Round Rock does not currently have an ordinance against STRs like Austin does, however many of the HOA's do have restrictions. The recent TX Supreme Court case has opened up some neighborhoods that were not previously, but the HOAs/COAs can be a challenge in many places.
Many lenders won't consider rentals with individual leases, as they're seen as rooming houses. You might be limited to non-banks who fund Airbnb's.
There are a couple of landlords in my neighborhood that do this and I can tell you they do not have good quality tenants at all. One of these rentals is next door to me and has been this way for the past 19 years that I know of. The owner of the property has never had quality renters. The other property that I know of a couple of blocks over is the same story just different owner.
I've tried to buy both properties for years so I could flip them but neither seller will sell. I know they get above market rents using this model but for me the quality of tenants isn't worth it.